Tax Information

Transaction Privilege Tax Program
The Town of Fountain Hills is a "program city" under the State of Arizona Transaction Privilege Tax Program. As a result, taxes for the Town are reported to and collected by the State of Arizona Department of Revenue on form TPT-1. The current sales tax rate for Fountain Hills, including the county and state portions, is 8.9%.

Transaction Privilege Tax / Use Tax
Fountain Hills taxes out-of-town purchases when the vendor has not collected the tax. This is commonly called Use Tax. The Region Code FH029 is reserved for Use Tax. The rate for this is 2.6%.

Transient / Bed Tax
The transient tax (also referred to as Bed Tax) applies to all persons who obtain lodging or the use of any lodging space for any period of not more than 30 days. The activity is reported on a separate line of form TPT-1 with the region code of FH144 for all rental contracts entered into after October 1, 2010 (pre-existing contracts continue to use FH003 until the end of the agreement).

For lodging rentals less than 30 days, there is also a state tax of 7.27% that is in addition to the Fountain Hills Bed tax of 4.0%. Combined with the Fountain Hills tax of 2.6% (FH044), the total Transient / Bed Tax is 13.87%. If a home, condominium, or any other space is rented for periods less than 30 days (i.e., weekly) then the transient tax applies for all periods even after 30 days.

Commercial / Residential Rentals
For lodging rentals less than 30 days, there is also a State tax of 7.27% that is in addition to the Fountain Hills Transient Occupant tax of 4.0%. If a home, condo or any other space is rented for periods less than 30 days (i.e., weekly) then the transient tax applies for all periods even after 30 days. The total tax reported to the Department of Revenue is 13.87%.

For long-term residential rentals over 30 days, the only tax collected is for Fountain Hills at the rate of 1.6%.

The combined tax rate for commercial rentals is 3.1% (2.6% for the Town of Fountain Hills and 0.5% for Maricopa County). Please note to use both commercial lease codes. See listing for more information.